Bank of England to Conduct System-Wide Test on Private Credit Risks
The Bank of England plans to conduct a large-scale stress test to assess the financial system's reaction to shocks in the private credit market.
This decision comes after the collapses of First Brands and Tricolor raised concerns about subprime lending.
The Bank of England's deputy governor for financial stability announced the plan.
The test aims to probe the market and understand its resilience to potential risks.
Author's summary: BoE to test private credit risks system-wide.